REFORMS IN THE ALBANIAN TAX ADMINISTRATION AND GOALS

REFORMS IN THE ALBANIAN TAX ADMINISTRATION AND GOALS FOR THE FUTURE MR. Artur Papajani General Director of the Albanian Tax Administration Washington, USA 8 -9 June 2009 1

Presentation • Reforms in the Tax Administration • Results of the Reforms • Goals for the future 2

Reforms in the Tax Administration THE NEED FOR REFORMS: • IMPROVEMENTS AND REFORMS OF INSTITUTIONS • INTEGRATION IN EU 3

Reforms in the Tax Administration REFORMS IN: • FISCAL LEGISLATION. • FUNCTIONAL, EFFICIENT AND FLEXIBLE ORGANISATIVE STRUCTURE. • IMPLEMENTATION OF IT SYSTEMS. 4

REOFMS IN FISCAL LEGISLATION TAX PROCEDURE’S LAW NR. 9920 DATE 19. 05. 2008 • FUNDAMENTAL TRANFORMATION OF THE TAX ADMINISTRATION: • PREVIOUSLY IT WAS FOCUSED IN: – TAXPAYERS CONTROL – TAX ASSESSMENT FROM THE TAX ADMINISTRATION 5

REOFMS IN FISCAL LEGISLATION TAX PROCEDURE’S LAW NR. 9920 DATE 19. 05. 2008 • TODAY: RECENT LAW § FUNCTIONAL STRUCTURE OF THE TAX ADMINISTRATION § SELF-DECLARATION AND SELF ASSESSMENT FROM THE TAXPAYERS § TAXPAYERS SERVICE § MODERN PRACTICES OF TAX ADMINISTRATION § TECHNOLOGICAL DEVELOPMENTS FOR TAX ADMINISTRATION AND TAXPAYERS. 6

REOFMS IN FISCAL LEGISLATION TAX PROCEDURE’S LAW NR. 9920 DATE 19. 05. 2008 • TODAY: RECENT LAW § TAXPAYERS VOLUNTARY INDULGENCE OF THE TAX LEGISLATION § RISK ANALYSIS § CREATION OF INVESTIGATION STRUCTURES 7

ORGANISATIONAL STRUCTURES BASIC PRINCIPALS: • Checks and balances authority: transparence improvement and reduction of corruption • Structure grouping based on functions • Flexibility to answer to the changes • Increase of the responsibilities and the disposal of the performance assessment systems. 8

ELECTRONIC SYSTEMS SERVICES: • E-DECLARATION AND ON-LINE PAYMENTS • DOWNLOADING E-DECLARATIONS FROM INTERNET • CONTACT MANAGEMENT WITH TAXPAYERS • ON-LINE COMUNICATION WITH NRC • COMPUTARISATION OF RISK ANALYSIS 9

REOFMS IN FISCAL LEGISLATION RESULTS: TRANSFORMATION OF THE MISSION IN THE TAX ADMINISTRATION IN ORDER TO COLLECT INCOMES BY SUPPORTING SELF-DECLARATION TO INCREASE TAX REVENUES 10

REFORMS IMPACT RESULTS: TAX REVENUES COLLECTION: 2002 -2008 11

REFORMS IMPACT RESULTS: INSURANCE CONTRUBUTES: 2002 -2008 12

REFORMS IMPACT RESULTS: TAX REVENUES FIRST 4 -MESTER : 2002 -2008 13

REFORMS IMPACT RESULTS: Insurance Contributes, First 4 -MESTER : 2002 -2008 14

Organisational Structure RESULTS: • Creation of Tax Regional Directorates – 37 tax branches in → 15 regional directorates 22 service agencies 15

Organisational Structure 37 branches 15 Regional Directorates 16

Organisational Structure GROUPING THE STRUCTURES BASED ON FUNCTIONS 17

REFORMS IMPACT DIVISION OF THE EMPLOYEES IN THE NEW ORGANISATIONAL STRUCTURE 21. 67% Sherbimi Tatimpaguesit Taxpayers service 8. 17% Kontrolli Tax. Tatimor Control 30. 03% 30. 34% 10. 86% 7. 43% Investigimi Investigation Informatika IT Vleresimi Estimation Sektoret Ndihmes Help Sections 18

Organisational Structure RESULTS: • Professional Improvement of Human Resources • Vertical dependence 19

ELECTRONIC SYSTEMS RESULTS: • HIGH QUALITY OF THE TAXPAYERS SERVICE • CONTACT MINIMISING OF THE TAXPAYERS WITH TAX INVESTIGATORS • TRANSPARENCE INCREASE TOWARDS TAXPAYERS • IMPLEMENTATION OF EQUAL CRITEREAS IN CONTROL SELECTIONS • MORE EFFECTIVE USE OF THE ADMINISTRATIONS HUMAN RESOURCES 20

REFORMS IMPACT RESULTS: • IMPROVEMENT OF IT AND ELECTRINIC SERVICES • IMPROVEMENT OF RISK ASSESSMENT, TO SELECT THE CASES TO CONTROL AND INCOME REVENUES • IMPROVEMENT OF TAX REVENUES COLLECTION • MODERNISED APPEAL PROCEDURES TO MINIMISE TAX CONFLICTS • UNIFIED FINES REGIME 21

REFORMS IMPACT ELECTRONIC SERVICES 4, 500, 000 Vizitat Totale - www. totale. gov. al 4, 000 Deklarimet Elektronike 12000 10000 3, 500, 000 3, 000 8000 2, 500, 000 6000 2, 000 1, 500, 000 4000 1, 000 2000 500, 000 Total Hits 2008 -02 2008 -03 2008 -04 2008 -05 2008 -06 2008 -07 2008 -08 2008 -09 2008 -10 2008 -11 964 1, 026, 0241, 172, 7371, 316, 9731, 816, 8632, 358, 1582, 803, 1363, 357, 7034, 072, 249 50, 000 Numri i Vizitorëve - www. tatime. gov. al 45, 000 0 Janar 80000 Prill Maj Qershor Korrik Gusht Shtator Tetor SHKARKIMET E DEKLARATAVE TATIMORE 2008 60000 35, 000 30, 000 50000 25, 000 40000 20, 000 30000 15, 000 20000 10, 000 10000 5, 000 - Mars 70000 40, 000 Total Visitors Shkurt 2008 -022008 -032008 -042008 -052008 -062008 -072008 -082008 -092008 -102008 -11 9 17, 150 21, 761 23, 903 29, 611 31, 881 38, 188 46, 315 0 Janar Shkurt Mars Prill Maj Qershor Korrik Gusht Shtator Tetor 22

REFORMS IMPACT RESULTS: • ESTABLISHING A BETTER BALANCE THROUGHOUT THE RIGHTS AND OBLIGATIONS OF THE TAXPAYERS • IMPROVEMENT OF BUSINESS CLIMATE IN ALBANIA, BY ELIMINATING TAX OBSTACLES FOR INVESTMENTS • SUPPORT FOR EUROPIAN INTEGRATION, THROUGH INTERNATIONAL TAX PRACTICES IN THE TAX ADMINISTRATION 23

FUTURE GOALS • Enlargement of electronic service for taxpayers – All types of tax e-declaration forms – On line assessments for taxpayers tax situations – Declaration of wages social insurance contributes • Annual reports of taxpayers 24

FUTURE GOALS • Network Enlargement of Taxpayers Contact Centers in Albania • Automation of all processes in the Tax Administration • Compilation and Implementation of IT strategic plan (long-term) 25

THANK YOU! www. tatime. gov. al 26